Inter made a dream start as they took the lead in the second minute with the very first attempt of the match.
An excellent left-flank cross from Alessandro Bastoni was met by a sublime volley by Marcus Thuram inside the 18-yard box, and his superb finish flew past Federico Ravaglia to secure his ninth goal of the season in all competitions.
A free-flowing game almost saw Bologna equalise midway through the first half, but Federico Bernardeschi’s stinging effort was parried away from danger by Josep Martínez.
Drama struck shortly after the half-hour mark when the Rossoblu were retrospectively awarded a penalty, after the VAR officials instructed the referee to check his video monitor for a handball from Inter’s Yann Bisseck.
Riccardo Orsolini stepped up to take the spot-kick and confidently blasted the ball straight down the middle to level the match.
With the interval on the horizon, the Nerazzurri came agonisingly close to reclaiming the lead when Federico Dimarco’s rapid shot took a massive deflection off Colombia international Jhon Lucumí, steering the ball inches wide of the post.
The game continued to be a very open contest after half time as Luis Henrique and Dimarco both forced Ravaglia into good saves to keep Bologna in contention in the opening few minutes of the second half.
With the Rossoblu defence struggling under more pressure, Daniele Chiffi initially awarded a penalty to Inter after it appeared that Ange-Yoan Bonny was brought down by Torbjorn Heggem.
However, VAR once again intervened, and the referee reversed his decision to the Nerazzurri’s dismay after checking his video monitor.
With the prospect of penalties looming, Inter certainly looked the more likely side to find a late winner. With 10 minutes of normal time remaining, Ravaglia pulled off a smart stop at his near post to deny substitute Lautaro Martínez.
From the resulting corner-kick, an unmarked Bastoni wasted a golden opportunity as his free header was steered wide. The Rossoblù could have won it themselves in stoppage time, but Josep Martínez came to Inter’s rescue with a great save to thwart substitute Giovanni Fabbian.
Despite this late charge, a penalty shootout was needed to decide the match.
In an eventful shootout, Ciro Immobile held his nerve to convert the deciding spot-kick as Bologna defeated Inter 3-2.
Ravaglia played a huge part in Bologna’s success, making two vital saves for his side, and they will now face SSC Napoli in the final of the Supercoppa Italiana on Monday, after Antonio Conte’s side defeated AC Milan 2-0 in their semi-final.
Flashscore Man of the Match: Federico Ravaglia (Bologna)